These obligations cannot possibly be met, says Singer.

And financial institutions aren't helping. They are traditional lenders anymore, they're trading dangerous securities. Unlike 30-40 years ago, this is position taking and the ownership of assets, not just advisory or brokerage commissions.

Singer wrote about his concerns about banks in his latest investor letter, he also wrote about monetary policy

That's what he's talking about now. He's concerned that countries are too reliant on monetary authorities to get us out of recession. At first, right after the crash, this response was appropriate, he says.

But now governments need to come up with progrowth policies themselves. The problem is an absence of political will.

Central Banks have "reveled" in this role as saviors of the global economy.

Now the CBs have accelerating QE that they think is essentially free. They're building up risk while the world is growing too slowly and they aren't advising governments on how they can grow themselves.

"At what point...does confidence in the management of the countries and the money disappear?"

Yes, unraveling QE could hurt bond prices, but the world needs growth that isn't related to monetary policy.

QE causes a "distorted recovery."

People in this room are doing just fine, says Singer, but "the average person is paying a lot of money... for the necessities of life. Is worried about his or her job... and is experiencing... an economy that has basically recession level unemployment."

Both these companies are taking share, are unique assets, have limited macro sensibility and favorable credit.

Level 3 has $40 billion in real estate. Its balance sheets used to be questionsable but its been able to refinance. There are low expectations for it, but there is accelerating revenue growth and the downside story is fading away as is balance sheet becomes more durable.

As for TW, 80% of revenue comes from carrying data. He loves that bc it's an axpanding business.

He said it's too early to say how bad the credit cycle could get.

Eisman's presentation is over.

David Stiemerman is up and he's bearish on South African consumer credit.

Unsecured loans are exploding, especially loans from 3-5 years.

The lending practices of the boom have made them even riskier. He believes there's been wide-spread fraud as borrowers under report their living expenses and lenders are complicit in this.

Retailers are offering unsecured credit to bump up sales as well. However, they experience cred deterioration faster than banks. Some retailers are beginning to see this already, while Stiemerman believes the rest of the country's credit is just about to turn.

McMillan's pick is Tribune

Jeff Gundlach is up! And it looks like he's going to talk about government spending.

He started off with an annecdote about Roosevelt, and how the famous New Deal President at first railed against government spending. Hoover took the opposite tack, but since unemployment was up 25%, Hoover didn't have a shot.

Then the banking panic happened, Roosevelt blamed the economic crisis on bankers and he spent like crazy in his first 100 days. "The country needs and demands bold and persisitant experimentation," he wrote.

Einhorn Begins With Joke — 'Welcome To Day 2 Of The Sohn Conference'

On to the meat of the conversation — Drill services company, OIS

He's long... says it's low cost, highly mobile, and has 34 rigs. It has lower than average growth margins too.

However, drilling is only 5% of precorporate EBITDA for OIS. It also has a completion services business which basically preps sites for drilling (making the safe etc.). OIS has great products in the market and 40-50% of its rental tools are proprietary or patented.

There's also a tubular services business (casing and production), where it is a market leader. But this business drags down the value of the company as a whole, Einhorn believes, and is one of the reasons the market values it.